BEagle, did you buy the 'service' with a Visa or some-such?
I'd be fuming about that and if within the time-scales, resort to the protection of the credit company. The problem will probably be the nature of the purchase inasmuch as it requires decision-making to effect a repair. However, that sounds like blatant bullying to me.
You were entitled, if not obliged by the owners of the software, to have the upgrade. I can not see how it's acceptable to be presented with an out of date OS following what is supposed to be skilled support.